Regional: Efficiency Improvement and Connectivity Strengthening in Archipelagic Southeast Asia Project

Sovereign Project | 41074-012

Summary

The key objective of the TA is to promote higher and sustainable growth by enhancing the infrastructure access and connectivity in the region. To achieve this objective, the TA supports five areas of regional priorities for development in energy and transport infrastructure with a common goal of attracting higher level infrastructure investments. The components are stand-alone, but, together,their impact on regional development will catalyze and support infrastructure investment.

The energy and transport components will have separate outputs but both will lead to common outcome of higher and environmentally sustainable economic growth.

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Project Name Efficiency Improvement and Connectivity Strengthening in Archipelagic Southeast Asia Project
Project Number 41074-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6441-REG: Efficiency Improvement and Connectivity Strengthening in Archipelagic Southeast Asia Project
Technical Assistance Special Fund US$ 1.25 million
Regional Cooperation and Integration Fund US$ 1.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Sector / Subsector Energy - Conventional energy generation - Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - biomass and waste - Renewable energy generation - small hydro - Renewable energy generation - solar
Transport - Transport policies and institutional development
Gender Equity and Mainstreaming No gender elements
Description

The key objective of the TA is to promote higher and sustainable growth by enhancing the infrastructure access and connectivity in the region. To achieve this objective, the TA supports five areas of regional priorities for development in energy and transport infrastructure with a common goal of attracting higher level infrastructure investments. The components are stand-alone, but, together,their impact on regional development will catalyze and support infrastructure investment.

The energy and transport components will have separate outputs but both will lead to common outcome of higher and environmentally sustainable economic growth.

For the energy component, the main objective of this technical study is to identify several implementable, financially viable projects covering both conventional and renewable energy and to obtain the necessary developmental approvals to deliver these as bankable investments. The scope will not be limited to only the supply side option of generating more energy but will also look at the demand side option of efficient energy consumption and utilization, including building consumer awareness for demand side management.

The focus of the transport component will be to develop a Master Plan for the transport sector specific to Sumatra, including detailed assessment of improving port connectivity of Sumatra to Malaysia, Thailand and road transport within Sumatra.

Project Rationale and Linkage to Country/Regional Strategy

ADB's Regional Country Partnership Strategy (RCPS) for archipelagic Southeast Asia (aSEA) covers Brunei Darussalam, Indonesia, Malaysia, Singapore, and the Philippines. The common context for development in aSEA are: (a) these are middle or near-middle income countries with large disparities within and between them; (b) they comprise thousands of islands facing many development barriers, high transport and communications costs, and are susceptible to natural disasters; and (c) the environmental resource base is also under stress as most marine and forest resources are being exploited beyond the point of sustainability.

Areas covered by this TA are consistent with the pillars of the RCPS and the priorities of the regional governments. Lack of funding for new infrastructure investments to support economic growth is slowing economic development in this region.

Impact Improvement in access to power and transport infrastructure for people in archipelagic Southeast Asia (aSEA)
Project Outcome
Description of Outcome Cheaper imported electricity in West Kalimantan
Progress Toward Outcome

ADB will propose two project loans for the Governement of Indonesia and Malaysia,(i) INO: Strengthening West Kalimantan Grid, (ii) MAL: Trans Borneo Power Grid, which are programmed for 2013.

The TA was completed in October 2012.

Implementation Progress
Description of Project Outputs

Study of the Sarawak-Kalimantan transmission line

Identification of several conventional energy, renewable and energy efficiency projects, and a completed study with financing options from each category

Study the potential economic corridors in BIMP-EAGA and IMTGT

Efficient program coordination

Status of Implementation Progress (Outputs, Activities, and Issues)

The RETA completed a study in August 2011 on the financial, economic, and technical viability of the proposed transmission line by reviewing past technical studies and establishing medium-term demand and supply forecast on the Indonesian and Malaysian power systems. ADB will propose two project loans for the Governement of Indonesia and Malaysia ( INO: Strengthening West Kalimantan Grid and MAL: Trans Borneo Power Grid) which are programmed for 2013.

The RETA completed a study in December 2011 and identified possible renewable and energy efficiency projects. One of the projects was the Philippine project loan for the Market Transformation through the Introduction of Energy Efficient Electric Vehicles which was approved in December 2012 (Loan 2964-PHI).

The RETA completed a study in January 2011 on the on potential economic corridors in BIMP-EAGA and IMT-GT.

Program coordination was created in 2008 which engaged individual consultants to support the RETA program.

The TA was completed in October 2012.

Geographical Location West Kalimantan (Indonesia), Sarawak (Malaysia), Philippines, Indonesia
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

The TA will require 212 person-months of consulting services: 86 from international consultants and 126 from national experts. For the energy component, the following consultants will be engaged: (i) legal and regulatory frameworks specialist, (ii) environmental and social impact assessment specialist, (iii) power transmission specialist, (iv) renewable energy development specialist, and (v) demand-side management and energy efficiency specialist. For the transport component, the following consultant will be engaged: (i) transport (roads and port) planning specialist, (ii) highway specialist, (iii) financial and economic analysis specialist, (iv) social and environmental impact assessment specialist, and (v) maritime specialist. The consultants for the program coordination component will include international and national specialists with relevant experience.

Two consulting firms will be engaged, one each for the energy and transport components, by ADB in accordance with its Guidelines on the Use of Consultants (2007, as amended from time to time). ADB will select consultants using its quality and cost-based selection methodology (80:20) with full technical proposals. In addition, individual consultants will be recruited for the program coordination component. The major reports required from the consultants for each component will be (i) an inception report describing a detailed work program (3 weeks after the start of the RETA), (ii) progress reports each quarter, (iii) a draft final report, and (iv) a final report. Both groups of consultants will arrange workshops and seminars as required throughout the duration of the RETA.

Responsible ADB Officer Sohail Hasnie
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Asian Development BankMr. Sohail Hasnieshasnie@adb.org6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 11 Apr 2007
Fact Finding 18 Jun 2007 to 22 Jun 2007
MRM -
Approval 19 Dec 2007
Last Review Mission -
PDS Creation Date 15 May 2007
Last PDS Update 25 Mar 2013

TA 6441-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2007 - 19 Dec 2007 31 Mar 2010 31 Oct 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,750,000.00 0.00 0.00 0.00 0.00 0.00 2,750,000.00 19 Dec 2007 2,737,256.39

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

No documents found.


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